Files

IR13-015_Camarero.pdf (670.66 KB)

Document type

Working paper

Publication date

2013

Publication license

cc-by-nc-nd, (c) Camarero et al., 2013
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/57825

The relationship between debt level and fiscal sustainability in OECD countries

Journal Title

Authors

Director/Tutor

Journal ISSN

Volume Title

Related resource

Abstract

In this article we unify the traditional approaches to testing for fiscal sustainability considering the stock-flow system that fiscal variables configure. Our approach encompasses previous ways of testing for sustainability. The results obtained for a group of 17 Organization for Economic Cooperation and Development -OECD- countries point to weak fiscal sustainability, as well as to the existence of cointegration between deficit and debt, confirming the relevance of the stock-flow approach. Allowing for structural breaks and multicointegration turns out to be of critical importance to assess whether the fiscal authorities apply their policies looking for sustainability and whether, simultaneously, they try to stabilize real debt target levels.

Subject

Tipus d'interès, Integració econòmica, Models economètrics, Anàlisi de dades de panel, Organització de Cooperació i Desenvolupament Econòmic

Subject (English)

Interest rates, Economic integration, Econometric models, Panel analysis, Organisation for Economic Co-operation and Development

Citation

Collections

Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))
AQR (Grup d’Anàlisi Quantitativa Regional) – Working Papers
Documents de treball / Informes (Econometria, Estadística i Economia Aplicada)

Citation

CAMARERO, Mariam, CARRIÓN I SILVESTRE, Josep Lluís and TAMARIT, Cecilio R. The relationship between debt level and fiscal sustainability in OECD countries. IREA – Working Papers. 2013. Vol.  IR13/15. ISSN 2014-1254. [consulted: 17 of June of 2026]. Available at: https://hdl.handle.net/2445/57825

Export metadata

JSON - METS

Share record